Canada Student Financial Assistance Regulations

19 (1) Subject to section 15 and section 9 of the Canada Student Loans Regulations, the Minister may, on application in the prescribed form containing the prescribed information, provide the first stage of a repayment assistance plan to a borrower for a period of six months if

• (a) the borrower resides in Canada;

• (b) the borrower has signed, in respect of

  • (i) risk-shared loans, guaranteed student loans or direct loans made to the borrower as a full-time student, a consolidated risk-shared loan agreement, a consolidated guaranteed student loan agreement or a consolidated direct loan agreement, as the case may be, and

  • (ii) risk-shared loans or direct loans made to the borrower as a part-time student, a student loan agreement or a direct student loan agreement, as the case may be;

• (c) all of the risk-shared loan agreements and guaranteed student loan agreements referred to in paragraph (b) are held by a lender, or, in the case where an event referred to in any of paragraphs 15(1)(c) to (g) or paragraphs 9(1)(c) to (g) of the Canada Student Loans Regulations has occurred, by the Minister or a lender;

• (d) no more than 120 months have elapsed

  • (i) in respect of the loans referred to in paragraph (b)(i), since the day on which the borrower most recently ceased to be a full-time student under section 8 or, in the case of a borrower to whom only guaranteed student loans have been made, section 4.1 of the Canada Student Loans Regulations, and

  • (ii) in respect of the loans referred to in paragraph (b)(ii), since the day on which the borrower most recently ceased to be a full-time student under section 8 or a part-time student under section 12.3, as the case may be; and

• (e) the borrower’s monthly affordable payment calculated under subsection (2) is less than their monthly required payment calculated under subsection (3).

(2) The monthly affordable payment is equal to

• (a) $0, if the borrower’s monthly family income is no more than the minimum monthly income threshold for their family size determined in accordance with Schedule 1; or

• (b) the borrower’s monthly family income multiplied by the lesser of the amounts determined by the following formulae:

  0.2A

  1.5[((X – Y)) ÷ 100Z+0.01]A

  where

  A

  is the ratio, in relation to all loans referred to in paragraph (1)(b) and provincial student loans, of the borrower’s outstanding principal to the borrower’s outstanding principal plus the outstanding principal of those loans for which instalments are due for any spouse or common-law partner of the borrower,

  X

  is the borrower’s monthly family income,

  Y

  is the monthly income threshold for the borrower’s family size determined in accordance with Schedule 1,

  Z

  is the monthly increment for the borrower’s family size determined in accordance with Schedule 1.

(3) The monthly required payment is equal to

• (a) the outstanding principal of the loans referred to in subparagraph (1)(b)(i) and provincial student loans, amortized over a period of the greater of

  • (i) six months, and

  • (ii) 120 months minus the number of months that have elapsed since the day referred to in subparagraph (1)(d)(i) plus the number of months since that day during which the borrower benefited from any special interest-free periods under section 19 or 20 or section 17 or 18 of the Canada Student Loans Regulations, as they read immediately before the coming into force of this section, or repayment assistance under this section; and

• (b) the outstanding principal of the loans referred to in subparagraph (1)(b)(ii), amortized over a period of the greater of

  • (i) six months, and

  • (ii) 120 months minus the number of months that have elapsed since the day referred to in subparagraph (1)(d)(ii), plus the number of months since that day during which the borrower benefited from any special interest-free periods under section 19 or 20 as they read immediately before the coming into force of this section, or repayment assistance under this section.

(4) A borrower shall receive no more than 60 months, in the aggregate, of special interest-free periods granted under section 19 or 20 or section 17 or 18 of the Canada Student Loans Regulations, as they read immediately before the coming into force of this section, and repayment assistance under this section

• (a) in respect of any loan referred to in subparagraph (1)(b)(i), since the day referred to in subparagraph (1)(d)(i); and

• (b) in respect of any loan referred to in subparagraph (1)(b)(ii), since the day referred to in subparagraph (1)(d)(ii).